FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 29, 2026

Schedule of Fair Value Measurements, Recurring and Nonrecurring

The following tables set forth, by level within the fair value hierarchy, our financial assets and liabilities that were measured at fair value on a recurring basis.


	March 29, 2026									December 28, 2025
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
		(in millions)
Assets:
Derivatives:
Commodity derivative contracts		$	20	$	3	$	1	$	24	$	26	$	2	$	—	$	28
Foreign exchange contracts		—		1		—		1				—				—
Exchange traded funds (1)		134		—		—		134		135		—		—		135
Mutual funds (1) (2)		73		—		—		78		71		—		—		78
TPG Rise Climate, L.P. investment fund (2) (3)		—		—		—		20		—		—		—		22

Total		$	226	$	3	$	1	$	257	$	232	$	2	$	—	$	263

Liabilities:

Commodity derivative contracts		$	19	$	5	$	—	$	24	$	3	$	—	$	—	$	3

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(1)Exchange traded funds and mutual funds are held in rabbi trusts to fund nonqualified defined benefit pension and deferred compensation plans. These assets are restricted to satisfy our liabilities for these plans and are subject to the claims of our general creditors in the event of insolvency. These trusts are VIEs and are included in our condensed consolidated financial statements. These assets are classified in other assets on the condensed consolidated balance sheets except for the amount of participant distributions scheduled to occur within twelve months of the balance sheet dates, which are classified in prepaid expenses and other current assets.

(2)Funds that are not publicly traded are estimated at fair value using the net asset value (“NAV”) per share of the investment as a practical expedient and are not categorized in the fair value hierarchy. Therefore, the sum of the values categorized in the fair value hierarchy above do not agree to the total.

(3)The TPG Rise Climate, L.P. investment fund (“TPG fund”) is classified in other assets on the condensed consolidated balance sheets. Our unfunded commitment to the TPG fund was $7 million and $5 million as of March 29, 2026 and December 28, 2025, respectively. The TPG fund returns capital through periodic distributions, which are made at the discretion of the fund. The TPG fund has a termination date of December 31, 2034 with no redemption rights prior to termination, and any remaining capital is returned at the end of the term through asset sales or final distributions.

Schedule of Fair Value Measurement Inputs and Valuation Techniques

he following table provides the significant unobservable level 3 inputs used in the valuation.


Unobservable Inputs	March 29, 2026		December 28, 2025
Weighted-average cost of capital	10	%	10	%
Growth rate	3	%	3	%
EBITDA multiple	9.25x		8.75x
Control premium	25	%	25	%

Schedule of Debt

The following table presents the fair value and carrying value of total debt.


	March 29, 2026				December 28, 2025
	Fair Value		Carrying Value		Fair Value		Carrying Value
	(in millions)
Total debt	$	1,889	$	1,987	$	1,909	$	1,986

SMITHFIELD FOODS INC 10-Q